I-Band Classification System

Employee Compensation
I-Band
Classification
System
A Pay and Job Classification Structure
for International Locally Hired Employees
This brochure summarizes our compensation policies. Every
effort has been made to provide accurate information, but in
the event of a conflict between this brochure and the official
documentation, the terms of the official documentation will
prevail. Although the Company intends to continue these
compensation policies, the Company reserves the right to
change, modify, amend, or terminate them at any time.
I-Band Model and Programme Eligibility
Employees who are U.S. expatriates and some employees in certain subsidiaries
will not be classified on the I-Band structure.
Note: The size of the I-Band boxes
generally represent the number of
people in each band worldwide.
Most people will be in the I-D, I-E,
and I-F bands. There may only be a
few people in the I-A and I-B bands
at any given time.
Office/technical support
4F
3F
2F
1F
Major vice president/
senior leadership jobs
Vice president/
major director jobs
Director/senior manager
jobs warranting an
individual incentive
Entry- to mid-level career,
professional/technical,
managers
4E
3E
2E
1E
Mid- to high-level
career, experts,
mid-level managers
3D
2D
1D
I-A
Annual Incentive Plan,
Performance Awards
I-B
Annual Incentive Plan,
Performance Awards
I-C
Annual Incentive Plan
I-D
Employee Incentive Plan
I-E
Employee Incentive Plan
I-F
Employee Incentive Plan
The I-Band Classification
System for International Locally
Hired Employees
“Boeing is committed to a
global presence, and supporting our international
Boeing provides a competitive pay and benefits
package to our international employees. The total
package includes base pay, incentives, benefits,
perquisites, and opportunities (such as career
development and learning), as appropriate in each
local market.
people is integral to build-
The I-Band job classification structure is one component of the total package (the “I” stands for
International, and “Band” is short for compensation broadbands). The I-Bands’ flexible structure is
designed to work in a variety of geographies with a
standardised method for classifying jobs. The structure reflects locally competitive practices, as well as
a consistent Companywide philosophy.
and our tools, like the I-Band
ing a strong future,” said
Rick Stephens, senior vice
president of Human Resources and Administration.
“Our people, our processes,
structure described in this
brochure, are integrated
globally, managed regionally,
and applied locally—where
our employees need us.”
How Do I-Bands Work?
There are six I-Bands: I-A, I-B, I-C, I-D, I-E, and I-F. They accommodate a range of skills at locations with
only one employee or hundreds of employees. In fact, two employees in different parts of the world could
have the same I-Band level but different pay packages according to local markets, education, experience,
and performance. The I-Bands are broad enough so that an employee within an I-Band can progress
in duties, responsibilities, and pay within that band. To provide career paths, professional growth, and
promotional opportunities, we have identified sublevels for I-Bands D, E, and F. The sublevels use clear
evaluation factors so that the correct sublevel within an I-Band can be matched to a specific position
description.
I-Bands include three core elements:
• Base pay guidelines that recognise individual
competencies, knowledge, experience, and
sustained performance.
• Annual incentive opportunities that recognise
specific short-term objectives and results at
the corporate, business unit, and individual levels.
Employees are eligible for either:
— An Annual Incentive that provides an opportunity
for eligible employees to earn an incentive based
on the Company’s yearly economic profit performance, as well as individual performance; or
— The Employee Incentive Plan (EIP) that provides
eligible employees with a cash award opportunity
designed to promote customer-focused solutions
and maximise annual economic profit.
BOEING is a trademark of Boeing Management Company.
Copyright © 2009 Boeing. All rights reserved.
• Long-term incentives for I-A and I-B employees
that recognise impact level, commitment, and
corporate success in creating shareholder value.
Performance Awards are conditional grants that
vest based upon the achievement of certain
internal financial goals over a rolling three-year
performance period.
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